Brazilian banks among the most profitable, Tupy buys engine manufacturer and what matters in the market – 04/19/2022 – Market

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Brazil has 4 of the 10 most profitable banks

Among the ten most profitable banks in the world, four are Brazilian. The survey is from Economatica, which gathered the 2021 return on equity (ROE) of banks with more than $100 billion in assets.

The indicator measures how much a company can generate value from its own resources.

In numbers: the leader among Brazilians for the fourth year in a row is the national branch of the Spanish company Santander, with a ROE of 18.9%. Global number one until the previous year, in the current ranking he was third.

Next comes Ita├║ Unibanco, with a ROE of 17.3% and fifth overall. Banco do Brasil, with a return of 15,7%and Bradesco, from 15.2%, occupy the seventh and eighth positions in the world, respectively.

Fall: although these four Brazilian banks are recognized for the high profitability of their operations, the indicator has been falling in recent years.

Their median profitability was 16.5% in 2021, a retraction of 6.6 percentage points compared to 2010. What helped to avoid a greater fall was Santander Brasil, which raised its ROE from 6% to 18.9 % in that range.

In front: despite the downward curve, Brazilian institutions are ahead of the American ones. The 19 US banks in the ranking have an ROE that historically ranges between 8% and 11%.

In 2021, the profit of the four Brazilians totaled BRL 81.632 billion, a nominal growth (not counting inflation) of 32.5% compared to 2020.

In the purse: this year, the performance of the shares of Brazilian banks is also ahead of their American peers, highlights columnist Marcos de Vasconcellos.


What does the end of the Covid emergency change at work?

The end of the public health emergency announced by Minister Marcelo Queiroga, of Health, will also affect the lives of workers.

What explains: in all, more than 170 ordinances of the Ministry of Health will be impacted with the end of the current regulation. Among them is the end of the obligation for companies to require the use of masks, for example.

Calm down there: despite the announcement, the measure has not yet been published, so all ordinances or laws linked to the state of emergency in health are still valid. Queiroga said that the formalization should take place by the end of this week.

What changes:

  • Workers with flu-like symptoms will no longer need to be removed immediately. In this case, the general rules for sick leave must apply again: to be removed, only with a certificate.

  • Companies may demand the mandatory return of pregnant women. A recent law still allows teleworking for those who are not fully vaccinated. With the end of the emergency, pregnant women will have to return to work, vaccinated or not.

  • Delivery platforms will no longer be obliged to take out insurance and provide financial assistance to motorcycle couriers who work through them, in case of removal.

What doesn’t change:

  • The options for remote work, home office or face-to-face activity are decisions of the company and are not affected by the state of emergency. The new rules for this type of activity went into effect last month.

Flexitarians drive vegan market

With the interest in veganism consolidated, brands and producers have been increasingly striving to vary flavors and recipes to conquer a growing audience: flexitarians.

Understand: these people are those who, while not being vegan or vegetarian, are willing to reduce their consumption of animal protein.

In numbers: nearly 1 in 4 consumers worldwide (23%) try to limit their meat intake, according to a 2021 Euromonitor survey.

In Brazil, the share of Brazilians who stop eating protein at least once a week willingly is even higher: 46%.

What explains: The trend has gained strength with the effort of vegan brands to expand their recipes, focusing on flavor and variety, which attracts consumers far from this world and helps to popularize and make businesses more sustainable.

other business have also emerged from the growth of this market:

Vegan startups: to attract a public not adept at the segment, startups have invested in research to create products with an appearance and taste similar to meat, milk and derivatives. The strategy, called plant-based, generates criticism from the sector.

  • There is also Vegan Business in the country, an investment platform for startups in the segment.

Vegan stamps: they serve as a certificate of origin of the products and are coveted by entrepreneurs. There are vegan and “cruelty free” certifications, which indicate that there are no traces of animals or animal testing in development.

More about vegan market:


Tupy buys MWM from Brazil for BRL 865 million

The iron parts manufacturer Tupy announced this Monday (18) the purchase of MWM do Brasil by BRL 865 million. The company specializes in manufacturing truck engines and generators.

Tupy’s shares closed the trading session up 8.47%, at R$18.18.

The companies:

  • tupy: headquartered in Joinville (SC), most of the multinational’s revenue comes from outside the country. Last year, it bought competitor Teksid from Stellantis for around BRL 400 million.

  • MWM: the company manufactures engines to order, with expertise in trucks, agricultural machinery and generators. It also has a network with hundreds of points of sale and engine parts workshop.

The strategy: Tupy says that the purchase makes sense for the business of both companies and inserts the Santa Catarina manufacturer into the energy and decarbonization sector.

  • MWM announced recent partnerships for the use of biogas and biomethane for electricity generation and as fuel for fleets of trucks, buses and agricultural tractors.

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